Fiblon Corporate Responsibility Report

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1 Fiblon Corporate Responsibility Report

2 Foreword In reaching Fiblon s business targets, our highly competent and motivated staff is our most important asset. Our longstanding determination to develop our internal processes of involving personnel is now visible in everyday actions. Stopping the whole factory once a week for a joint meeting is one example of how everyone is offered the possibility to participate and discuss company development. For six consecutive years we have dedicated a day to define and discuss our jointly agreed-upon targets. All staff members participate and based on the outcomes, we have taken concrete actions and made significant investments in production technology, digitalisation of our processes, and especially in the development of personnel competence. We strongly believe that digitalisation of production and delivery processes will increase at a furious pace in the future. We will stay ahead of this development and keep enhancing our costeffectiveness while we excel in fulfilling the needs and wishes of our customers. With our flawless operations, responsibility as a requirement for production and our equipment, and excellence in our personnel s competence, we can concentrate on offering our clients even better expertise on the industry and products. We listen carefully and make sure that our clients receive the best possible solution with the most benefits from us. In this report, we have summarised our achievements of the past two years and our targets for the coming years. Enjoy reading! Pekka Ekberg CEO, Oy Fiblon Ab Key performance indicators and corresponding GRI indicators Revenues, 1000 (EC1) Operating costs, 1000 (EC1) Employee wages and benefits, 1000 (EC1) Payments to providers of capital, 1000 (EC1) Payments to government, 1000 (EC1) Community investments, 1000 (EC1) Coverage of defined benefit plan obligation % (EC3)1 100%/not paid 100%/not paid 100%/not paid 100%/not paid 100%/not paid Significant financial assistance received from government, 1000 (EC4) Average length of employment, years 14 11,8 12,8 13,7 13,7 Average days of absence per employee (LA7) 8,0 13,7 7,8 8,4 6 Total number of injuries (LA7) Total number of lost days (LA7) Percentage of employees receiving regular performance and career development reviews, % (LA12) 100% 100% 100% 100% 100% Average hours of training per employee, total (LA10) N/A Office staff average N/A Manufacturing staff average N/A Total employees (LA1 and LA2) Female Male Permanent contract Fixed term contract Full-time Part-time New employee hires during reporting year (LA2) Female Male Employees left during reporting year (LA2) Female Male Total employee turnover, % (LA2) 6% 24% 12% 3% 23% Energy consumption, MWh Direct energy consumption by primary, energy source, TJ (EN3) N/A 0,0003 0,0003 0,0003 0,0003 Indirect energy consumption by primary energy source, TJ (EN4) N/A 3,7 3,9 3,3 3,3 Water consumption 2, m 3 (EN8) Total direct and indirect GHG emissions, tco2 (EN16) Total weight of waste by type, 1000 kg (EN22) 202,3 229,0 204,0 149,8 120,6 Energy waste 74,2 81,6 70,7 52,8 71,6 Biodegradable waste 0,7 0,7 0,8 2,8 3,1 Landfill waste 2,4 1,4 2,1 3,7 1,9 Landfill waste, % 1,2% 0,6% 1,0% 2,5% 1,6% Paper and cardboard waste 120,6 142,0 129,5 90,5 41,8 Wood waste 3,3 3,3 0,9 0 2,2 1) Defined benefit plan obligation arranged through Varma Mutual Pension Insurance Company, 2) Water source: municipal water supplier

3 FIBLON IN BRIEF Fiblon is a privately owned company established in 1979 and located in Pori, Finland. Our operations began as a one-man business but today we operate a high technology automated production line. As a family-owned business we are continuously developing the company and have managed to keep it agile. This means that we can quickly test new solutions and that we take bold steps while carefully listening to our customers. Our products, markets and customers MISSIOn Fiblon helps professional customers to profile their operations and increase their profit by manufacturing tabletop products, wiping products and travel comfort items combined with services. Profiling consolidates the customer s own way of operation. VISION Fiblon is on its way to the Champions League as a forerunner by genuinely caring, transparently communicating and continuously developing. The customer is served with both products and services, that fulfil customer needs. VALUES Profitable growth Joy of working Satisfied customers Respecting the environment *) Yritysvastuuverkosto FIBS, Suomen Tekstiili ja Muoti, Satakunnan kauppakamari, Perheyritysten liitto, Suomen yrittäjät, Porin yrittäjät, Keskuskauppakamarin valtuuskunta, EK ulkomaankauppapoliittisen liiton valtuuskunta, Liikesivistysrahaston johtokunta, Finnveran neuvottelukunta. Fiblon is licensed to use the Swan label for all its tissue table top products. We also have the right to use the Finnish Key Flag for our products. Our operations apply the principles of ISO standards and Fiblon is an FSC Chain of Custody certified company: the certificate concerns disposable table top and wiping products (BV-COC-12075). Fiblon table top products are food safe. The Swan is the official Nordic eco-label, introduced by the Nordic Council of Ministers. The Swan label demonstrates that a product is a good environmental choice. The Key Flag, issued by the Association for Finnish Work, is a registered collective trademark that proves a product or service is made in Finland. Corporate responsibility is all about caring Our business activities are based on the principles of corporate responsibility. We comply with all valid laws, rules and regulations a s well as the principles associated with good governance. We fulfil our responsibility for sustainable development by taking into consideration the social, environmental and economic factors in our decision-making. We expect that our partners comply with and support our point of view on corporate responsibility issues. This is now our third Corporate Responsibility Report that details how we have integrated corporate responsibility into our operations and provides concrete examples of our progress. We focus on our past achievements and future ambitions for each of our four key themes: Profitable Growth, Joy of Working, Satisfied customers and Respecting the Environment. Our last report was published in March Our contact person in corporate responsibility issues at Fiblon is CEO Pekka Ekberg. The Board of Directors also plays a key part in developing our corporate responsibility strategy. The Board meets ten times a year and every decision is made taking corporate responsibility into consideration. In addition, Fiblon s management actively participates in various forums *. Our sense of responsibility is driven by concrete actions We listen carefully to our customers and our strong knowledge of products and the industry is at their disposal. Fiblon is an economic and sustainable option. We ensure the joy of working. The environment and transparency are at the core of our operations.

4 Profitable growth At Fiblon, we have continued our efforts to improve profitability according to our longterm plan. Profitable operations and growth are our financial foundation and enable us to make a positive contribution to society. Due to shrinking markets it has been challenging to maintain turnover. Renewal of our sales organisation and approach has been slower than anticipated. The flight connections to our location, Pori, have weakened and partly even disappeared, which has further challenged our operations. However, with now even more powerful sales team than before, we have decided to continue our investments in sales. Significant improvements have been achieved due to, among others, the completion of our new warehouse in 2013 enabling deliveries and distributions to operate directly from our factory terminal. The digitalisation of our internal processes, such as automated marking of incoming and completed goods and integration of this data directly into our ERP system, has increased the performance of our factory. All these combined with intensive and broad training has improved our competence and cost-effectiveness. In addition, R&D has created excellent functional products using even less material and energy and taking into account the whole supply chain Improving profitability Actions completed New storage facilities completed in 2013 enable factory terminal deliveries and distribution Continuation of the broad training programme More focus on product quality Building of a stronger sales organisation Measurable impacts Shorter delivery times Average of 47 hours training per employee in 2013/14 Training has been given in various topics, for example inline packaging machinery Two new sales managers were hired in 2014 Implementation of factory terminal deliveries and distribution with all clients Further development of product quality ISO certification Strengthening of the sales organisation CONCRETE EXAMPLE OF OUR EFFORTS: Development of factory terminal deliveries and distribution Factory terminal deliveries and distribution is now used with our largest domestic merchants. To create a reliable scheme this requires joint development and matching up of different IT systems in both ends. In the new system of factory terminal deliveries and distribution, orders are submitted as electronic messages which we receive automatically at our warehouse. There is no need to store the products at a wholesaler or in any distribution centre, only in our own warehouse. These developments speed up the delivery to the customer by 50%. The goods are dispatched from our own warehouse within three hours from the reception of order and they reach the end user within 48 hours. In addition, when using the new delivery process, the smallest delivery unit per article is a carton. This arrangement has significantly increased our flexibility in meeting our customers needs.

5 SATISFIED CUSTOMERS Our aim is to develop our operations to be even more customerdriven. We wish to create greater value for our customers and meet their expectations. For this reason we have executed a customer satisfaction survey in the beginning of 2015 and found out about our clients experiences from past years and expectations of value. Based on the results, our clients find Fiblon a trustworthy and professional operator whose products are of high quality. Flexibility and security of supply are key characteristics of our service and our flexible, kind and caring service separates us from others. Our clients confirm that we listen carefully to their needs and that we make things easy for them. In the future our clients wish to gain even more knowledge, understanding and expertise from us to enable them to concentrate deeper on achieving their own goals. For us this means innovative development of our offering and active showcasing of different solutions. The feedback we have received strengthens our notion that we have chosen the right strategy and encourages us to continue the development projects already begun Improving security of deliveries Sharpening of customer strategy Launch of Fiblon Future Concepts Actions completed Customer and product specific sales plans Development of customer strategy Organisational changes for better customer service Inspiring process of future concepts started A need for building of a brand hierarchy revealed Categorisation of the brands commenced Measurable impacts Security of deliveries 99% in 2014 Timely communication of all disruptions Preparation and execution of a customerquestionnaire to enhance customer communication Building of a sales organisation: two new sales managers were hired in 2014 Creation of SOFTLIN table top thinking and preparation of the product line To maintain the level of security of deliveries Sharpening of customer strategy and communication with customer questionnaires as a tool Introduction and implementation of SOFTLIN brand categories based on the clientele demands Redefining the concept of table top products with SOFTLIN CONCRETE EXAMPLE OF OUR EFFORTS: Listening to the client the SOFTLIN concept During the last few years we have developed new table top and wiping solutions with our customers to support their success. We have penetrated the markets step by step with our brands FIBRA and SOFTLIN. FIBRA cleaning wipes for kitchen professionals was launched in March In the beginning of 2015 we released a totally new SOFTLIN table top concept. SOFTLIN is a completely new way to meet the everyday challenges of professionals working in the cafe, fast food, restaurant, bakery, hotel and travel business. The challenges and practices are different in various business areas. SOFTLIN is the concept designed specifically to solve the demands of each separate industry.

6 Joy of working One characteristic of our operations is the spirit of collaboration. We want to create and sustain a motivating working environment, so that every employee can be proud of working at Fiblon. We fulfil our social responsibility by giving our employees challenging assignments in an international environment, supporting the continuous professional development of our employees and taking care of our employees well-being with our extensive occupational health care system. During the reporting period we have continued implementation of the Fiblon Common Goal Process, our management system involving Fiblon employees. The crux of the approach is to ensure that personnel have an opportunity to influence the operations of Fiblon, and to facilitate interactive cooperation between personnel and management. Sharing of best practices and demonstrating courage to do things differently are also important of the approach. In order to increase our personnel s appreciation and ability to influence their own work we have launched Fiblon Spirit, a new process building on involvement and listening to our entire personnel. Ever since setting the first jointly agreed-upon business targets in 2010 we have emphasized development areas that link to wellbeing at work. We have received significant results in e.g. communication, training and joint targets. Our broad training programme aims to motivate employees and it is based on their own development identified through a skills mapping exercise Continue to implement the Fiblon Common Goal Process. New strategic objective is skills development: Target to achieve 20 days training per person on average Balance between work and personal life Actions completed Development discussions held once a year Joint discussions following the model of Work Ability House Implemented flexible working time arrangements Measurable impacts Average of 47 hours training per employee in 2013/14 4 persons have started apprenticeship in electrical engineering and automation (executed during working hours) 100% of personnel have flexible/remote working arrangements Fiblon Spirit involvement and listening of the entire personnel Development of ergonomics on manual production lines Development of the salary system to meet the new competence and selfdevelopment requirements created by automation CONCRETE EXAMPLE OF OUR EFFORTS: The Work Ability House Fiblon has been an active player incorporating flexible working arrangements into practise for many years. These arrangements cover our whole personnel including head office, sales, maintenance, logistics and production. To boost wellbeing at work we introduced a new concrete model at the end of 2014: The Work Ability House by Finnish Institution of Occupational Health. We started the process by jointly discussing issues affecting wellbeing, what issues are working and what issues should be developed. The identified issues were classified to indicate the level of improvement needed. The next stage will be to implement the model by tackling our list of wellbeing issues. The main development areas for 2015 were chosen as jointly agreed-upon targets. Key aspects of wellbeing for Fiblon (floors of the Work Ability House) 1. Health and functional capacities The foundation of wellbeing Comprehensive health care and support for exercise and culture are sponsored by the employer, but the employee carries the ultimate responsibility 2. Competence The employer encourages the entire personnel to update professional competence and skills, including new skills 3. Values, attitudes and motivation Values of the company must materialise in all actions The most important factors of success are competence, attitudes and motivation. We try to influence these using the Work Ability House. 4. Work, work community and leadership Open leadership that involves personnel Special attention is paid to work safety training

7 Respecting the environment Fiblon s environmental mindset directs our products in every step of their life cycle. It starts from choosing the raw material suppliers and continues through to production, packing, transportation, end-use and recycling of the product. We aim to reduce the amount of materials, water and energy we consume and the amount of waste we generate. We have made small changes and new investments to decrease our environmental impact in both our manufacturing, R&D and administrative operations. We have managed to further decrease our overall energy consumption, water consumption and amount of waste generated, for example, by developing automatic process steering and improving our product development process. In 2014, Fiblon received FSC Chain of Custody certification. We can also proudly announce that all our tissue napkins are now Nordic Ecolabel certified. Since our first Nordic Ecolabel certification in 2004 we have introduced new certified products step by step and we aim to still expand the number of ecolabeled products. However, there are certain product groups which lack the criteria at the moment and therefore cannot be certified yet. We will continue our work to support the introduction of such ecolabel criteria Continuous improvement (e.g. yield) by personnel training and machine improvement. Systematic development of product and material portfolio Continuous decreasing of environmental impacts Actions completed Personnel training program Updated control and steering systems on 65% of the converting machinery (e.g. material web tension control, unwinding control). Renewed product development process. Material development in co-operation with suppliers. Expansion of certified ecolabeled products. Introduction of FSC Chain of Custody certification. Measurable impacts Increased efficiency by approx. 10% through less web breaks, higher machine speed and better yield. Improved usability by consistent personnel feedback. A hundred (18%) more new products without introducing any new raw-materials 16% less capital bound to supply chain by developed material composition and increased speed of circulation. Decrease in material consumption per product by 15% on certain products. All products that do have criteria for Nordic Ecolabel are certified. All products where applicable and customer approves are available as FSC Chain of Custody certified. Increased involvement of clients and personnel in R&D Reuse of materials CONCRETE EXAMPLE OF OUR EFFORTS: Compostability Environmental factors have been emphasized in Fiblon s operations for decades. We consider the whole life cycle of materials as well as the impacts of the final product. All our products are biodegradable and some of them even compostable. Compostability and biodegradability describe similar actions where given enough time and the right conditions the micro-organisms normally break down anything made of organic materials. Biodegradability involves a lengthy process, for example, in nature: a whole tree will biodegrade in time but it will take a very long time. Compostability, on the other hand, means that the timeframe and type of break-down process is defined. However, it should be noted that the arrangements of industrial composting may vary from country to country. To investigate the possibilities for composting we advise you to contact the local authorities.

8 CONTACT US Oy Fiblon Ab P.O. Box Pori, Finland REPORTING PRINCIPLES The aim of this report is to describe Fiblon s past achievements and future ambitions in demonstrating our corporate responsibility in a comprehensive manner. The reporting period for this report is As a basis for reporting, Fiblon has followed the international Global Reporting Initiative (GRI) G3 Guidelines on the contents and reporting principles. Based on Fiblon s own evaluation the report corresponds to GRI s application level C. This report will be updated every other year.

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